FAP.L Regulatory News (FAP)

19 February 2021

Ulster Bank Ireland DAC

Ulster Bank notes announcement by NatWest Group plc

Ulster Bank Ireland DAC ("UBIDAC") notes the announcement by NatWest Group plc ("NWG") on 19 February which stated that NWG had completed its strategic review of UBIDAC in the Republic of Ireland. UBIDAC notes that NWG has concluded that it intends to begin a phased withdrawal from the Republic of Ireland over the coming years that will be managed in an orderly and considered manner. Ulster Bank Limited's banking business in Northern Ireland is unaffected.

In the near term, it is expected that there will be minimal change for Ulster Bank customers and colleagues and our priority is to continue to remain focussed on supporting our colleagues in serving our customers in these difficult times.

UBIDAC notes that NWG will seek to implement a solution, or set of solutions to ensure that:

• our customers and colleagues are well supported;

• there is continued servicing of all clients;

• job losses are minimised;

• stability is maintained in the sector; and

• NWG's withdrawal from the Irish banking sector is achieved in an orderly manner.

UBIDAC and NWG as part of this phased withdrawal, have agreed a non-binding Memorandum of Understanding ("MoU") with Allied Irish Banks, plc for the sale of a c. €4bn portfolio of performing commercial loans, and the transfer of colleagues wholly or mainly assigned to this loan book.

UBIDAC notes that the potential transaction contemplated by the MoU remains subject to due diligence, further negotiation and agreement of final terms and definitive documentation, as well as obtaining appropriate regulatory and other approvals and satisfying other conditions. UBIDAC notes that the proposed sale may not be concluded on the terms contemplated in the MoU, or at all.

UBIDAC notes that NWG is also in early discussions with Permanent TSB Group Holdings plc amongst other strategic banking counterparties about their potential interest in buying certain retail and SME assets, liabilities and operations. These discussions may or may not result in agreement. UBIDAC notes that it is NWG's preference to continue to focus its discussions with strategic banking counterparties who can provide customers with full banking services in the Irish market.

UBIDAC will make a further announcement if it becomes appropriate to do so.

This announcement is released by Ulster Bank Ireland DAC and contains information that qualifies or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to Ulster Bank Ireland DAC as described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Alexander Holcroft, Head of Investor Relations for NWG. The date and time of this announcement is 19 February 2021 

For further information, please contact:

Ulster Bank Media Relations+353 (0) 87 77 39 750

Forward-looking statements

This document contains forward-looking statements such as statements that include, without limitation, the words 'expect', 'estimate', 'project', 'anticipate', 'commit', 'believe', 'should', 'intend', 'will', 'plan', 'could', 'probability', 'risk',  'target', 'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic', 'prospects' and similar expressions or variations on these expressions. These statements concern or may affect future matters, such as UBIDAC's future economic results, business plans and strategies.  In particular, this document may include forward-looking statements relating to UBIDAC in respect of, but not limited to UBIDAC's future economic results, business plans and strategies. Forward-looking statements are subject to a number of risks and uncertainties that might cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statements. Factors that could cause or contribute to differences in current expectations include, but are not limited to, the impact of the Covid-19 pandemic, future acquisitions or divestments, the outcome of legal, regulatory and governmental actions and investigations, legislative, political, fiscal and regulatory developments, accounting standards, competitive conditions, technological developments, interest and exchange rate fluctuations and general economic and political conditions. These and other factors, risks and uncertainties that may impact the above, and any forward-looking statement or actual results are discussed in UBIDAC's 2020 Annual Report and Accounts (including its Principal Risks and Uncertainties). The forward-looking statements contained in this document speak only as of the date of this document and does not assume or undertake any obligation or responsibility to update any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except to the extent legally required.

Legal Entity Identifier: UBIDAC - 635400KQIMALJ4XLAD78